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Declining Inequality in Brazil in the 2000s: What is Hidden Behind?

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  • Fabio Clementi
  • Francesco Schettino

Abstract

Ever since the late 1990s, personal income inequality has shown a steady decrease in Brazil. Most of the investigations dealing with this issue rely essentially on summary measures of inequality, which may not capture all the relevant aspects of income distribution. Using the Pesquisa Nacional por Amostra de Domicílios data for 2001–2012, this paper applies ‘relative distribution’ methods to analyse changes that have occurred along the entire Brazilian household income distribution. Despite substantial reduction in inequality, we are able to document also increasing income polarization, especially by the mid‐2000s. Similar patterns are detected for different socio‐economic groups defined by covariates measured on the households. Copyright © 2015 John Wiley & Sons, Ltd.

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  • Fabio Clementi & Francesco Schettino, 2015. "Declining Inequality in Brazil in the 2000s: What is Hidden Behind?," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(7), pages 929-952, October.
    • Handle: RePEc:wly:jintdv:v:27:y:2015:i:7:p:929-952
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    Cited by:

    1. Hugo Consciência Silvestre, 2017. "Themed Issue: Cash Transfers and Microfinance," Development Policy Review, Overseas Development Institute, vol. 35(5), pages 703-720, September.
    2. Zhang, Chen & Yu, Yangcheng & Li, Qinghai, 2023. "Top incomes and income polarisation in China," China Economic Review, Elsevier, vol. 77(C).
    3. Clementi, Fabio & Molini, Vasco & Schettino, Francesco, 2018. "All that Glitters is not Gold: Polarization Amid Poverty Reduction in Ghana," World Development, Elsevier, vol. 102(C), pages 275-291.
    4. Schettino, Francesco & Gabriele, Alberto & Khan, Haider A., 2021. "Polarization and the middle class in China: A non-parametric evaluation using CHNS and CHIP data," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 251-264.
    5. Clementi,F. & Fabiani,M. & Molini,V., 2018. "The devil is in the details : growth, polarization, and poverty reduction in Africa in the past two decades," Policy Research Working Paper Series 8494, The World Bank.
    6. Schettino, Francesco & Scicchitano, Sergio & Suppa, Domenico, 2024. "COVID 19 and Wage Polarization: A task based approach," GLO Discussion Paper Series 1398, Global Labor Organization (GLO).
    7. Khan, Haider & Schettino, Francesco, 2018. "Income Polarization in the USA (1983-2016): what happened to the middle class?," MPRA Paper 85554, University Library of Munich, Germany.
    8. Schettino, Francesco & Khan, Haider A., 2020. "Income polarization in the USA: What happened to the middle class in the last few decades?," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 149-161.
    9. Fabio Clementi & Vasco Molini & Francesco Schettino & Haider A. Khan & Michele Fabiani, 2023. "Polarization and its discontents: Morocco before and after the Arab Spring," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(1), pages 105-129, March.

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